Which one to choose for long term investment ?

POSTED BY Dev ON April 2, 2015 6:26 pm COMMENTS (8)

Hi ,

As a first time investor, i have short listed following routes to start investing in equity market, Please guide me which one is better.

1. Buying SIP in NiftyBEES as stock or ETF in Mutual funds.
2. SEP ( Systematic Equity Plan) on some of Large cap stocks for longer tenure.
3. Model equity portfolio offered by some of the brokerage houses like ICICI direct,Motilal oswal. With minimum investments of 3 lacs in Small cap portfolio or 5 lacs in Large cap portfolio,

8 replies on this article “Which one to choose for long term investment ?”

  1. Public Provident Fund or PPF is one of the best and secure long term investment options in India which is totally tax free.

    I feel PPF is the best investment to have as it also gives you a good returns plus you can also withdraw the amoutn after certain lock-in period. PPF account opened in any bank or post office is one of the best long term investment products. Under this, the money will be locked for a period of 15 years and earn compound interest. In addition, one can also extend the PPF account in extension of 5 years block.

    But less liquidity is a big negative for PPF account. You can partially withdraw your investment only at the end of 6th year. However there is an option of taking loan on the balance of PPF account.

    1. Thanks for your comment Deepali

  2. Hvishal says:

    This is exactly what I keep advising my friend who belongs to Muslim community. He has strict no to invest in any kind of mutual funds or stocks. Ultimately he ends up creating FDs having no option apart from buying insurance policies. The experts like Manish can suggest some alternatives at the same time following the ethical laws of particular religion. I’ve done enough study and found some ethical funds which are also not supposed to be purchased for investment purpose according to some people.

  3. dc says:

    Sir,
    There has two options for MF investments,one is online from stock exchange and other is offline mode,where AUM provided unit on based on your investment.
    which is best method for investment via DP A/C or online MF broker (where DP is not necessary)
    what are the difference between both of them?
    which is the best method for investment for retail investor?
    Pl.guide.

  4. Rajiv94 says:

    As per my knowledge, if interest earn from all income(s) gets more than Rs. 10,000 /- then you are bound to show it in Income Tax. Let others also comment on this.

    Thanks

  5. r25sisodia says:

    Dear Manish Sir,

    I want to know after ppf maturity without contribution interest money withdrawal is taxable or not.

    example:- In my ppf account after 15 years have 2000000 Rs. it’s earn interest 174000 if i withdrwal the interest money evey year so the money is count in my income so i have to pay tax on interest money or not. plz suggest me.

    Ravi Sisodia

    1. Dr.Sachin says:

      PPF is Exempt,Exempt,Exempt
      ie. money u invest is exempted from tax, interest gained is exempted and the final amount u withdraw or gain as interest is also exempted from tax

  6. swaraj says:

    There are many important aspects of retirement planning which sadly all companies are missing

    1) three step accurate retirement calculator for finding out exact amount of corpus, inflation adjusted tax efficient withdrawal amount pm, & investment needed pm or per year or lump sum to achieve that withdrawals is first & foremost requirement.90% of calculator fails in giving right figures

    2)proper asset allocation model is needed with proper research of schemes ideal for retirement savings parking has to be identified,no purchasing of ulips or otc kind high sounding mf schemes from desk of mutual fund advisor or bank HNI service desk is right way of investing for retirement .

    3) portfolio rebalancing is most critical in pre retirement phase which mitigates risk as the retirement age approaches.d) last but not least all withdrawals has to be inflation adjusted along with tax efficient,if retirement planning is missing these vital points, avoid them.

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